Flood Insurance Outside the SFHA
Just because your property is in Zone X does not mean it will never flood. Here is why flood insurance outside the high-risk area may still be one of the best investments you make.
Last updated: February 2026
The Risk Outside the SFHA
About 25% of NFIP flood insurance claims come from properties outside the SFHA.
The Special Flood Hazard Area represents the area with a 1% or greater annual chance of flooding, but flooding does not stop at a line on a map. Properties in Zone X face flood risk from several sources:
- Heavy rainfall and poor drainage - urban areas with impervious surfaces can flood far from any river or coast
- Overland sheet flow - water from higher ground can flow across properties not near waterways
- Infrastructure failures - sewer backups, stormwater system overloads, or broken water mains
- Development changes - new construction upstream or uphill can redirect water to previously dry areas
- Extreme weather events - storms that exceed the 1% annual chance event can flood areas outside the mapped SFHA
- Levee or dam failures - properties behind accredited levees may be in Zone X but face residual risk from overtopping or failure
Coverage Options for Zone X Properties
NFIP (Federal)
- Available to all properties in NFIP-participating communities
- Up to $250,000 building coverage / $100,000 contents
- Premiums based on Risk Rating 2.0 factors
- 30-day waiting period for new policies (except at loan closing)
- Backed by the federal government
Private Flood Insurance
- May offer higher coverage limits than NFIP
- Sometimes lower premiums for low-risk properties
- May include additional living expenses and replacement cost coverage
- Waiting periods vary by insurer
- Check that your lender accepts private policies if you have a mortgage
For a detailed comparison, see our NFIP vs Private Flood Insurance guide.
What It Costs
Under Risk Rating 2.0, NFIP premiums for Zone X properties are individually rated based on factors like distance to water, elevation, flood frequency, and building characteristics.
Typical Zone X Premium
$300 - $800
Per year (NFIP)
Average Flood Claim
$40,000+
Average NFIP claim amount
Federal Disaster Aid
~$5,000
Average FEMA individual grant
The math is straightforward: a few hundred dollars per year in premiums protects against tens of thousands in potential losses. Federal disaster assistance, when available, typically covers only a fraction of actual damages and is often in the form of a loan that must be repaid.
Common Misconceptions
"I'm not in a flood zone, so I can't flood"
Reality: Every property has some flood risk. Zone X means lower risk, not no risk. Flooding from heavy rain, drainage failures, and development changes can affect any property.
"My homeowner's insurance covers floods"
Reality: Standard homeowner's policies specifically exclude flood damage. This is true for all insurers and all zones. A separate flood policy is required for flood coverage.
"The government will help if I flood"
Reality: Federal disaster assistance is not guaranteed (a presidential disaster declaration is required), typically averages only about $5,000 per household, and is often a low-interest loan, not a grant.
"Flood insurance is too expensive for Zone X"
Reality: Zone X properties generally pay the lowest flood insurance premiums. Many policies cost less than $1 per day, making it one of the most affordable forms of property protection.
When to Buy Flood Insurance in Zone X
While every property owner should consider flood insurance, some Zone X situations carry higher risk than others:
- You are near (but just outside) an SFHA boundary
- Your property is behind a levee or downstream from a dam
- Your area has experienced flooding in recent years
- You are in Zone X (shaded), which has a 0.2% annual chance of flooding
- Significant development has occurred upstream or uphill from your property
- Your property is in a low-lying area or near a drainage channel
- Your basement or lowest floor is below grade
Most NFIP policies have a 30-day waiting period before coverage begins. Do not wait until a storm is forecast to purchase a policy.
This guide provides general information about flood insurance options and is not insurance advice. Premiums, coverage options, and availability vary. Contact a licensed insurance agent for quotes and recommendations specific to your property.
Frequently Asked Questions
Do I need flood insurance in Zone X?
Flood insurance is not federally required in Zone X, but it is strongly recommended. About 25% of all NFIP flood claims come from properties outside the Special Flood Hazard Area. Homeowner's insurance does not cover flood damage, so without a separate flood policy, you would bear the full cost of any flood damage.
How much does flood insurance cost in Zone X?
Under Risk Rating 2.0, NFIP premiums for Zone X properties are based on individual risk factors. Many Zone X properties pay between $300 and $800 per year for an NFIP policy. Private flood insurers may offer competitive rates, sometimes lower than NFIP, especially for properties with low elevation risk.
What is a Preferred Risk Policy?
The Preferred Risk Policy (PRP) was a low-cost NFIP policy available to properties in moderate and low-risk zones (B, C, X). Under Risk Rating 2.0, the PRP has been replaced by individually rated policies, but many Zone X properties still qualify for lower premiums that reflect their reduced risk.
Does homeowner's insurance cover flooding?
No. Standard homeowner's insurance policies specifically exclude flood damage. This is true regardless of your flood zone. To be covered for flood damage, you need a separate flood insurance policy through the NFIP or a private insurer.
Related Resources
Sources
This page summarizes information from FEMA and other official resources in plain language. For full technical details, see the links below.
- FloodSmart — Flood Insurance Outside High-Risk AreasDirect Source
Official NFIP consumer site with guidance on Preferred Risk Policies for moderate-to-low risk areas.
- FEMA Flood Insurance OverviewTopic Page
FEMA hub covering insurance requirements for all flood zones including non-SFHA areas.
- FEMA Flood Maps PortalGeneral Reference
Main flood maps hub. Look up your zone to check if you are in or out of the SFHA.
Sources last verified: February 2026
Explore Flood Zones by State
Check flood zone information for cities across the United States.
Check Your Flood Risk
Even outside the SFHA, knowing your property's flood zone helps you make informed insurance decisions. Enter your address to see your FEMA designation.